Despite diverse attitudes and tolerances towards risk in organisations, a strong risk management and compliance culture has been recognised across industries as an essential contributor to business and project success.
Improving risk management practice in enterprises can have a significant impact on, not only project performance, but also the prevention of possible disastrous incidents. Developing an appropriate and mature risk culture across a program of projects can, however, present great challenges. This article looks at managing the complexity of creating a compliant risk culture in a multi-project environment and how by investing in integrated enterprise wide project management practice, using technology and business process tools, can not only improve the risk profile maturity but also improve cost and schedule outcomes. There is also an opportunity, at the end of the article, to take the first step towards your own improved risk management practice.
Project controls are processes that help ensure projects are delivered on time and within budget. They are essential because companies cannot afford constant cost and schedule overruns. Nor can a business afford to gain a reputation for delivering projects late or with low quality. However, despite the presence of project controls processes at every projects-driven organisation, projects still fail to return planned value the vast majority of the time.
Instead of considering successful projects a happy anomaly, companies can and should utilise technology to institutionalise best practices from high performing projects and teams, bridge the gap between planning and execution, improve visibility of and access to information, increase efficiency, optimise resources, and apply common metrics across all divisions and departments.
Changes are inevitable in any project. Unforeseen hurdles can contribute to major setbacks and critical project risks. However, improving outcomes can sometimes be as easy as implementing an enterprise-wide integrated project process. By streamlining and standardising multiple projects within an organisation, efficiencies are created that can substantially impact projects performance.
When a standard enterprise-wide project process is adopted, projects are initiated with a toolkit of knowledge to get on the right track from the start. This methodical approach can identify risks early, promote timely communication, drive proactive decision making, control costs and schedules, and create an environment of trust and confidence for the management team. All of these outcomes contribute to eliminating unforeseen issues delivering a more predictable project. This article further explores how standardising and integrating internal projects creates a project environment where successful delivery is more likely.
According to PMI, “the primary purpose of a management control system is to acquire and organise data to facilitate valid decisions by cognizant decision makers. Almost any system which improves results of a major project even 1 percent through better decisions can justify its cost.” However many challenges are presented when an organisation uses multiple control systems and/or integrate data infrequently across control systems.
This article looks at the relationship between project performance outcomes and organisations’ accessibility to project data. You will see a direct link to successful outcomes for organisations that invest in integrating their systems to provide a single source of project control information. There is also an opportunity, at the end of the article, to take the first step towards improving your project maturity.